Economy & Business, International, Politics

At This Rate, China Might Peel Off From Russia

In September 2020, Michael Every of Rabobank floated the question: What possible disruption is coming that requires China to start massive stockpiling of all possible commodities?

It was no secret by 2021, China panic hoarded half of the world’s maize and other grains resulting in increased food inflation.

China’s buying spree of all commodities left many market observers puzzled by Beijing’s stockpiling motives. Now we understand the second-largest economy in the world was forecasting a global catastrophe of widespread famine due to disrupted food supply chains.

Global food supplies were already tight on a post-COVID basis due to snarled supply chains and adverse weather conditions in key growing areas worldwide. The Ukraine invasion by Russia was a shock. It fractured global food supply chains and sent food prices to record highs with the very risk shortages will materialize in emerging market economies dependent on the eastern European country. Read more…

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